President William Ruto has appointed Deputy President Kithure Kindiki to lead a government committee overseeing the implementation of the planned Ksh2.2 trillion East African oil refinery project in Lamu, working alongside private investors and employers.
Speaking at State House on Wednesday, July 8, during the signing of the Sovereign Wealth Fund Bill into law, Ruto said the government had already established implementation structures for what is set to become one of the country's largest private investments, with preparations for the project's launch now in the final stages.
The President disclosed that the government had already fixed a groundbreaking date for the refinery but did not reveal when the ceremony would take place.
"I have asked the Deputy President to chair the government committee that is going to work with private investors and employers for what will be one of the largest investments in our country, the investment in the East African oil refinery," Ruto said.
"It is a Ksh2.2 trillion investment in our country. We have already set up a date for the groundbreaking, for your information," he added.
The latest announcement marks a significant step forward for the project after Ruto previously indicated construction would begin later in 2026.
His latest remarks suggest the government has now moved beyond planning and into the implementation phase.
In the 2026/27 Budget, the government allocated Ksh21.5 billion in seed capital for the refinery, with the remaining investment expected to come from private sector partners under the Public-Private Partnership (PPP) model.
Ruto's announcement comes amid reports that Nigerian billionaire Aliko Dangote has selected Lamu Port as the preferred location for the refinery, ending months of uncertainty over whether the multibillion-shilling project would be established in Kenya or Tanzania.
According to Dangote Industries, construction of the refinery is expected to take between 30 months and three years before commercial refining operations begin, supplying fuel to Kenya and neighbouring countries.
The company has also indicated that financing for the project will come through a mix of internally generated funds, bond issuances and proceeds from a planned initial public offering (IPO), reducing dependence on external debt.
Once completed, the refinery is expected to process more than 700,000 barrels of crude oil per day, boosting Dangote's combined refining capacity to 2.1 million barrels daily as part of its continental expansion strategy.
The facility is expected to supply refined petroleum products to Kenya, Tanzania, Uganda, South Sudan and other East African markets, helping reduce the region's dependence on imported fuel while improving energy security against global supply disruptions.
